General Motors reached a "binding agreement" Tuesday to sell Swedish subsidiary Saab to Dutch-based automaker Spyker Cars, ending a year-long saga and saving the iconic brand from a complete wind-down that was already underway, dpa reported.
The Swedish government welcomed the rescue, which came after a weekend of final talks between Detroit-based GM and the Dutch niche sports car group.
"Today's announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM," said John Smith, GM's vice president for corporate planning and alliances.
The Dutch carmaker will form a new company as a result of the deal, Saab Spyker Automobiles. GM will get 74 million dollars in cash, 326 million dollars in preferred stock in the new company, and a "third consideration" that Smith refused to detail.
Swedish Enterprise Minister Maud Olofsson told reporters that "this is the result of long, arduous work."
Olofsson said the government had been involved in the process since GM a year ago announced it wanted to shed Saab, but the government's principle was not to become owner of a car plant.
The Swedish government was also willing to back a state guarantee for a 550-million-dollar loan from the European Investment Bank, Olofsson said. The loan, to be paid out in portions, was aimed at various projects to develop cleaner fuels and other environmentally friendly technology.
Stockholm has underlined that it wants to make sure that a buyer has sufficient financial and organizational strength not to put taxpayers' money at risk.
Anette Hellgren of the white-collar union at Saab expressed relief over the announcement. "It is great that we have got a deal," she told Swedish broadcaster SVT.
"We see a future with a new owner," Hellgren added.
The Dutch group was the only viable bidder left following an announcement Monday by the Luxembourg-based investment company Genii Capital backed by Formula One boss Bernie Ecclestone that it was no longer a contender.
GM head Ed Whitacre had said Monday the talks were "progressing" and it was important for a quick agreement on the deal. The alternative was shutting down the Swedish carmaker for good.
Genii Capital said in a statement Monday that it "believes that the timing of the next stage of the shutdown process at Saab is not compatible with its requirements for putting in place a solid business platform for the future and closing the transaction."
Earlier this month, GM appointed a liquidator to wind down Saab, a process that would have taken several months. Smith said the wind down had only been in the planning stages over the last couple of weeks and would not affect the sale.
GM's interest in Saab - one of Europe's smallest carmakers - dates back to the early 1990s. The company took full control in 2000. A year ago, GM said it planned to shed the Swedish brand as part of a broader restructuring.
Saab has some 3,400 employees in Sweden, most of whom are based at the main plant in Trollhattan, south-western Sweden. An additional 3,000 positions with subcontractors are at stake, according to the Automotive Supplier Industry group.
Smith said GM requested no employment guarantees under the deal. It would be up to Spyker whether it planned additional cuts.